Wall Street firms have lifted ratings and price targets for Tesla (TSLA), stressing the moves are purely based on the EV giant’s fundamentals, despite market worries over capital outflows ahead of SpaceX’s planned June 12 IPO.
Tesla closed Tuesday at $434, up 1.56%. Analysts remain deeply divided over its outlook. Piper Sandler, Canaccord Genuity and Wedbush are bullish, setting price targets at $500, $450 and $600 respectively. By contrast, UBS and Barclays hold a cautious stance with targets of $364 and $360.
The upgrades stem largely from Tesla’s aggressive investment in robotaxi business and industrial supply chains. The company has ramped up spending on semiconductors, lithium refining and battery production, greatly mitigating supply chain risks. Analysts flag Cybercab as a key near-term catalyst. They see greater value in building a scalable robotaxi ecosystem rather than chasing short-term profits.
Industry forecasts show robotaxi revenue will grow gradually. The segment will generate limited revenue in 2026, before seeing rapid expansion starting in 2027. By 2030, robotaxis are projected to become a major contributor to Tesla’s overall revenue and gross profit growth.
Tesla’s robotaxi service is set for broader rollout by the end of this year, though operations will be restricted by fleet scale and geofencing. Large-scale fully autonomous services will only launch after FSD v15 software is fully validated, meaning meaningful robotaxi revenue growth will likely arrive next year.
While many investors fear capital will shift from Tesla to SpaceX after the IPO, analysts say this factor played no role in their latest assessments. Tesla faced headwinds in 2026 including fierce competition and shrinking margins, yet its long-term transformation toward smart mobility and robotics still wins institutional confidence.
Boasting a $1.5 trillion market cap, Tesla trades at a lofty valuation with a trailing P/E of around 370 and forward P/E near 200. Even if its share price pulls back, the stock will remain expensive. Investors are advised to track FSD progress and robotaxi deployment pace closely for future trading cues.
